According to Vichai, the acting director of the Real Estate Information Center at the state-owned Government Housing Bank of Thailand, the price index for newly built homes for sale in Bangkok and surrounding areas during the third quarter of this year increased by 2.1% compared to the same period last year, with a slight 0.1% rise from the second quarter of this year. Additionally, the price index for single-family homes in Bangkok and surrounding areas has continuously increased for five consecutive quarters, with a 2.6% growth in the third quarter of this year compared to the same period last year.

These data points indicate a sustained increase in the prices of homes for sale, especially in the Bangkok area of Thailand.

The reasons behind the surge in property prices primarily include the increase in land prices, construction material costs, and labor expenses. In terms of labor costs, the Thai government plans to raise the minimum daily wage to 600 baht over the next four years. Construction costs have been influenced by the rise in oil prices due to the Russo-Ukrainian conflict, directly impacting transportation and construction material costs. According to data from the Thai Treasury Department, land prices are expected to increase by approximately 8.93%, further propelling the rise in property prices.

The increase in labor, construction material, and land costs has resulted in significant increases in the listing prices of newly opened housing units in Thailand over the past two years. With the implementation of the policy to raise the minimum wage standard, it is expected that the Thai real estate market will continue to rise.

For investors interested in purchasing property in Thailand, now is an opportune time to make buying decisions and acquire real estate early. The current cost of purchasing property is likely to be the low point in comparison to future costs.